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VCU Finance & Administration University Controller's Office

912 W. Franklin Street, Richmond, VA 23284-3035 (804) 828-0388 VCUFinance@vcu.edu

 

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Definitions: Permanent, Current and Adjusted Budget

Permanent Budget-The permanent budget is the permanent or annual funding commitment (base budget) of the University to a specific department or program. The permanent budget is used as the basis for development and implementation of the University's internal budget as well as for projection purposes. Permanent budget is not shown on INB (internet native) Banner forms. In Banner, permanent budget is calculated as (Adopted Budget plus Adjusted Budget) minus Temporary Budget.

Tip: Fiscal staff who wish to view a report on permanent budgets are encouraged to login to MyVCU portal, click on eServices/VCU Self Service. Select Finance>Budget Queries and Retrieve Existing Query named Permanent Budget Calculation (Shared). You will need to change the fiscal year and organization code. Reports that include permanent budget are also available through the VCU Reporting Center.

Current Budget-The current budget is the operating budget for the current fiscal year. It represents the actual allocation of funds to a specific department or program in any given fiscal year. Here's an example of permanent versus current budget:

A position permanently budgeted at $30,000 is vacant on July 1 and subsequently filled on September 1 at a State salary of $30,000. The permanent budget must be set at $30,000, which corresponds to the salary. The current budget includes the commitment for the current fiscal year. Since the position was vacant from July 1 to September 1, there are two months of salary savings or $5,000 of available current budget. This amount may be reallocated, on a current basis only, to another budget pool (budget account). During implementation of the following year's budget, the $30,000 will be used as the base.

In Banner, the field name for current budget is Accounted Budget and is the basis for the Adjusted Budget shown on most Banner Finance forms. The Adjusted Budget is the current budget loaded for the fiscal year plus any department initiated budget reallocations.

Tip: Fiscal staff who wish to view a report on adopted, accounted, temporary and budget adjustments are encouraged to login to MyVCU portal, click on eServices/VCU Self Service. Select Finance>Budget Queries and Retrieve Existing Query named Budget 1 (Shared). You will need to change the fiscal year and add the organization, fiscal period and add V for chart of accounts. Reports that include current budget are also available through the VCU Reporting Center.

Adjusted Budget-An organization's adjusted budget, shown in the Banner financial system, is the total expenditure authority for the fiscal year. Adjusted Budget is a calculation based on the Current Budget and includes department initiated Budget Adjustments and any Temporary Budget transactions.

Tip: Adjusted budget can be found on Banner INB forms FGIBDSR and FGIBDST. Reports that include adjusted budget are also available through the VCU Reporting Center.

Budget Pools

In Banner budgets are established at either a budget pool level (5 digit Banner account) or at the specific account level (6 digit Banner account) depending on the type of account and ledger. Budget pools allow for the aggregation of similar expenditures (for example, all travel expenditure accounts) at a summary level. However, there may be some specific expenditure accounts for which a more detailed level of budgeting is required. In those cases, budget will be set at the specific 6 digit account level.

 
   
 
Page last updated 23 May, 2013
 

Virginia Commonwealth University
Finance & Administration
University Controller's Office
912 West Franklin Street
Box 843035
Richmond, Virginia 23284-3035
(804)828-0388